This past summer, Tandem Bank acquired Allium Lending Group, a green finance platform. The targeted lending platform may boost Tandem’s business in the growing interest of ESG finance.
In a note distributed by Tandem, the challenger bank says that more than half the UK population still has no idea what green finance is and how it contributes to the UK’s commitment to a zero-carbon economy by 2050.
Tandem notes that UK Chancellor of the Exchequer, Rishi Sunak, recently confirmed that the UK will issue its first green gilts in 2021 and will introduce new climate disclosure requirements. UK Prime Minister Boris Johnson has also revealed a “10 point Green Plan” that may boost the UK government’s aspiration to build back greener from the coronavirus pandemic. Tandem says it is building the UK’s first green digital bank and believes it is well-positioned to be part of this societal trend.
Tandem anticipates that consumers will increasingly put energy efficiency and other green considerations higher on their priority list irrespective of the need to comply with future regulations such as Minimum Energy Efficiency Standards.
“Green finance and the zero carbon home in particular is something that consumers are becoming more aware of, but something they still don’t necessarily understand; they either don’t know how to make a difference or how best to fund the changes they want to make. At Tandem, we are on a mission to make it simpler and quicker for our customers to achieve sustainable living, both with respect to the climate and their lives with money. Consumers need to be helped to access green finance whether that is by saving in a way that supports the green agenda or by improving the green credentials of their everyday life through their choice of energy supplier, day to day spend decisions, investment decisions including choice of pension, or residential decisions like home purchases and home improvements. There’s a real opportunity for positive change in the “post-corona” world of retail banking and there has never been greater potential for green banking pioneers to lead the way to a more sustainable financial future for all of us and our planet.”